Japanese gaming giant Nintendo recently announced that as part of its business strengthening strategy, the company will consider enhancing its internal game development capabilities by acquiring game development companies and converting them into subsidiaries.This information was clearly stated by Nintendo President Shuntaro Furukawa in a supplementary document to the company's latest financial report (released in May 2025).

On page 54 of the financial report and related documents, Furukawa Shuntaro outlined several key initiatives the company plans to implement to consolidate its business foundation.Among them, the first task is to "strengthen the game development organization within the Nintendo Group."To achieve this goal, specific measures include:

· Acquire a game development company and make it a subsidiary.

· Expansion of existing development facilities.

· Construction of Building 2 of the company’s headquarters development center (tentative name).

This move was widely interpreted as Nintendo's preparation for the huge success and future demand of the next-generation console Switch2.Since the release of Switch 2, the sales speed has set a record, and the huge user base has put forward higher requirements for the continuous and high-quality game content supply.Through the acquisition and integration of external development resources, we will be able to effectively expand our R&D capacity and meet the strong demand for games on new hardware platforms.

In addition to strengthening game development, Furukawa Shuntaro also mentioned two other key investment directions:

1. Build non-game entertainment software assets: Drawing on the successful experience of "Super Mario Bros. Movie", the company will more actively invest in areas that have synergies with the game business, including but not limited to film production.

2. Maintain and expand user relationships: Funds will be used to maintain and expand contact points with consumers with the "Nintendo Account" system as the core.

Industry analysts believe that Nintendo’s acquisition strategy is expected to be different from other giants’ large-scale acquisitions of well-known studios in recent years.Instead, Nintendo prefers to acquire small and medium-sized studios that have long-term close cooperation, cultural fit, and are good at developing their IP.

Currently, Nintendo's subsidiaries include Next Level Games, which developed "Luigi's Mansion 3", and Monolith Soft, which is responsible for the "Xenoblade Chronicles" series.Studios that have long-term close cooperation with it, such as HAL Laboratory, which developed "Kirby", and Camelot Software Planning, which developed "Mario Tennis", are also regarded as potential acquisition targets in the future.

With the strong market performance of Switch 2 and the expansion demand for future game lineups, Nintendo's move to consolidate its first-party development capabilities through strategic acquisitions marks the company's entry into a new stage of growth and integration.